On July 2, 2014, Kelt Exploration Ltd. (Kelt) acquired Capio Exploration Ltd. (Capio), a private Canadian oil and gas company with crude oil and natural gas assets located at Valhalla/La Glace, adjacent to the Kelt’s core producing areas at Pouce Coupe and Spirit River in west central Alberta (the Acquisition).

Pursuant to the terms of the Acquisition, the consideration paid by Kelt, before adjustments, was $75.0 million in cash and the issuance of 4,270,956 common shares of Kelt (Kelt Shares) with an aggregate value of $58.0 million, based on the five day volume weighted average price of Kelt Shares that traded on the Toronto Stock Exchange from June 9th to 13th of $13.58. In addition, Kelt repaid Capio’s outstanding debt for a total transaction cost, before adjustments, of $165.0 million.

Kelt Exploration Ltd., headquartered in Calgary, Alberta is an oil and gas company.